taxes types, methods & budgeting process section 5 MCQ Questions & Answers Detailed Explanation

Question : 1

Which of the following department prepares outcome budget?

a) Budget division under department of Economic affairs

b) Department of financial services

c) Public finance division under department of expenditure

d) NITI Aayog

Question : 2

Find the tax which is direct tax among the following.

a) Service Tax

b) Entertainment Tax

c) House Tax

d) Value Added Tax

Question : 3

Who had suggested an imposition of ‘expenditure tax’ in India for the first time?

a) R. J. Chelliah

b) Kalecki

c) Kaldor

d) Gautam Mathur

Question : 4

Corporation tax

a) is levied by the Union and collected and appropriated by the states

b) is levied by the Union and shared by Union and the states

c) is levied and appropriated by the states

d) is levied by the Union and belongs to it exclusively

Question : 5

Which of the following can finance the Govt. of India’s fiscal deficit?

1. Foreign Direct Investment (FDI)
2. Foreign Portfolio Investment (FPI)

a) (ii) only

b) Both (i) (ii)

c) (i) only

d) Neither (i) nor (ii)

Question : 6

Consider the following taxes

1. Corporation tax
2. Income tax
3. Service tax
4. Union Excise Duties

a) (iii) (ii) (i) (iv)

b) (i) (ii) (iv) (iii)

c) (ii) (i) (iii) (iv)

d) (iv) (i) (ii) (iii)